Population growth & impact. Western Europe and the US currently have around 1.1bn people, about the same as Africa. Within 30 years the West will shrink to around 1bn with Africa growing to 2.5bn. This 230% growth dwarfs Asia which will grow by around 26% at the same time.
As Western Economies consolidate and even contract there will be relatively little opportunity for wholesale entrepreneurial growth.
UK & US organisations want to support growth and regeneration in SA. Both for ESG reasons and because it makes good commercial sense to have a strong “African Exposure” in any portfolio looking for long term growth.
By contrast, the potential growth in Africa over the next 30 years is even greater than that already seen in Asia over the last 40 years.
But this potential for growth needs to be stimulated from within, not through Government handouts or international subsidies.
It has been proven many times over that the fastest way to shift the societal dial toward regeneration and growth is to create jobs. Not just low-level menial jobs but knowledge worker jobs that empower the worker to develop themselves and their community. They are both changed and become an agent for change.
But how to create these jobs? Government and NGOs can play a part, but stimulating and supporting local entrepreneurs to succeed and employing others is a very fast agent for positive change.
More expertise and support need to be put in place before strong growth can be achieved. Yes, there are many stories of success coming out of townships in SA, but the potential within those townships, and across Africa is far greater than currently realised, with only the most entrepreneurial, most motivated, so far making the leap to success.
The next, much larger cohort of entrepreneurs and business owners are the middle majority, who will facilitate massive societal change if nurtured and helped to success. Otherwise many will never make the leap from dependence to independence.
Paying it forward. By supporting these future “middle majority” business leaders at the start of their careers it is possible to create a culture of ongoing support so that they “pay forward” the help they have been given by replicating the process themselves.
This brings about societal change many times faster than giving money, aid or Government policy.
What are we doing?
We bring decades of expertise in every area of business that an early stage business or an entrepreneur just starting out needs. Around 60% of businesses that start fail in the first few years despite having a good idea and serving a strong market demand. They fail through lack of experience, not knowing, rather than not being good enough.
We prevent these businesses from failing by adding the needed expertise at the right time to help the business owner avoid all the traditional traps that would kill their business, allowing it to flourish and grow.
Some will still fail, but nowhere near the rate without intervention. Early stats suggest that between 50% and 65% of businesses that would normally fail go on to succeed, grow and create more jobs.
Where are we operating?
Africa is a vast continent so we need to start somewhere. Cape Town is the logical starting point as it has good infrastructure and is at the forefront of development. We will have the greatest impact in the Western Cape most quickly. But this model and success can develop across the continent.